The Romney campaign is accusing President Obama of cutting Medicare by $700 billion in order to pay for "Obamacare," and has made that charge the centerpiece of a new ad. The basic claim: Obama stole the money seniors put into Medicare in order to give health care to other Americans.

The Romney campaign has gone on the offense on Medicare, charging that the Affordable Care Act “cuts $716 billion” from the entitlement program.

That $716 billion figure is one you’ll probably be hearing a lot about during this election cycle. It’s worth understanding where it comes from and what the spending reductions mean for the Medicare program.

First, where it comes from. On July 24, the Congressional Budget Office sent a letter to House Speaker John Boehner, detailing the budget impact of repealing the Affordable Care Act. If Congress overturned the law, “spending for Medicare would increase by an estimated $716 billion over that 2013–2022 period.”

As to how the Affordable Care Act actually gets to $716 billion in Medicare savings, that’s a bit more complicated. John McDonough did the best job explaining it in his 2011 book, “Inside National Health Reform.” There, he looked at all the various Medicare cuts Democrats made to pay for the Affordable Care Act.

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"Behind every great fortune lies a great crime."Honore de Balzac

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